Rubicon Technology, Inc. (NASDAQ:RBCN) Regains Some Value in a Correction

[[tagnumber 0]]Rubicon Technology, Inc. (NASDAQ:RBCN) share price spiked up on Tuesday after the stock hit a multi–year bottom in the previous trading session. The short selling volume jumped up as well yesterday and the chart suggests RBCN could make some more short–term gains this week.[[tagnumber 1]] [[tagnumber 0]][[tagnumber 3]][[tagnumber 1]] [[tagnumber 0]]RBCN made a huge jump in an upward correction yesterday, closing the market at $1.59. That is a 17.78% gain from the previous close and the trading volume was smaller, though technical indicators still give short–term bullish signals for today. RBCN got volatile as traders expected the second quarter earnings and for today it could jump higher to cross the 10–day moving average.[[tagnumber 1]] [[tagnumber 0]]The company is specialized in providing mono–crystalline sapphire used in the manufacturing of optical systems and electronic devices. In July this year, RBCN signed a resource sharing agreement with another company that should reduce the costs. According to the terms, RBCN will receive a lower cost polishing process and in exchange it will provide access to some underutilized equipment in Malaysia.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 10]]Any cost reductions are yet to be seen, though investors currently do not seem optimistic about RBCN, putting very low P/S and P/B ratios on the company‘s stock. Looking at the second quarter sales, that low valuation could be justified. Sales dropped by more than one half from the same period of last year, whereby the decrease is due to both lower volumes and lower prices.[[tagnumber 1]] [[tagnumber 0]] Another still not evaluated negative impact on RBCN is to come from a complaint file by an investment fund in April. According to the filings, the lawsuit is related to the company‘s March 2014 stock offering and could also cause huge losses.[[tagnumber 1]] [[tagnumber 14]] [[tagnumber 1]]